Monday, February 22, 2010

Nomination of Insurance Nominees

The Insurance Nomination Law, which came into effect on 1 September under the Insurance Act, gives policyholders two options when nominating a beneficiary or beneficiaries under their life or, accident and health insurance policy.

Under the new law, policyholders of policies that are effected on their own lives and which pay a death benefit can choose from two options: Make a trust nomination, or a revocable nomination.

With a trust nomination, the policyholder relinquishes all rights to the policy, and can only regain it with the consent of all nominees.

With a revocable nomination, the policyholder retains the ability to unilaterally change, add or remove nominees.

To know the details, simply read Your Guide to the Nomination of Insurance Nominees 2009 (English) or (Chinese).

Referring to the English guide, page number 12 explains what ought/should be done on existing policies.

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